Customer behavior is changing and demanding of having a flawless experience on their purchase transaction– quick and convenient. According to the data, 74% of the shoppers’ main challenge in the retail experience is waiting in long queues to check out their product. Based on a different study, 86% of customers departed a store due to excessive lines.
Meanwhile, customers are returning to physical stores and businesses are competing to provide a satisfactory experience to the customers through a frictionless checkout strategy. As indicated in the book Industry in Focus, 41% of the customers are willing to spend more for a product that they can purchase fast or immediately.
Frictionless checkout plays a vital role in enhancing customer satisfaction, improving conversion rates, and driving repeat purchases. Its objective is to eliminate client discomfort and unnecessary issues during the checkout process, ensuring a seamless and simple transition to prevent order abandonment or unpleasant experiences.
Considering effective frictionless payment solutions as part of the overall customer experience is crucial. To be classified as frictionless, a payment method must offer a speedy checkout process that reduces the number of steps required to complete an order, streamlines the purchasing process, and incorporates a progress bar to enhance clarity.
Furthermore, retail businesses now incorporate numerous frictionless payments, such as Mobile Apps for purchasing; a handy Mobile Wallet to pay for online or in-store orders; the efficiency of Contactless Payment enables customers to complete transactions without entering a PIN; the Buy Online, Pick-Up In-Store- a simple approach for customers to pick up what they have previously purchased online; and Buy Now, Pay Later (BNPL) or allowing customers to purchase in installments
Embracing technology and data throughout the process is one of the most important factors in thriving in the frictionless shopping era, particularly in providing what your customers demand. Here are some of the advantages of seamless payment when checking out.
- Reducing Cart Abandonment
Lengthy and complex checkout processes contribute to an average cart abandonment rate of 69.99%, with 17% of customers abandoning due to these issues. Frictionless payments smooth out the procedure, providing faster and more enjoyable purchasing experiences
- Enhancing Customer Retention
Streamlined transactions foster increased customer loyalty, as customers feel valued and well-served. Frictionless payments contribute to customer retention by offering seamless and hassle-free experiences for those paying with cash or online.
- Gaining a Competitive Edge
Implementing frictionless payment options, which are convenient and cutting-edge, positions businesses ahead of competitors who have yet to adopt these solutions. Embracing this method is critical for maintaining competitiveness in today’s technologically advanced era.
- Ensuring Secure Transactions
Considering security is paramount in the digital age, where benefits coexist with potential risks. Implementing secure payment transactions strengthens your company’s security, safeguards its reputation, and maintains customers’ trust. Tokenization, for instance, enables customers to complete purchases and pay with their credit cards without entering their PIN, ensuring a secure and seamless payment process.
In general, frictionless payment solutions offer numerous options to keep businesses ahead of the competition. Incorporating these solutions into retail or e-commerce stores is highly beneficial.